News Column

Pound Advances Ahead Of US Jobs Data

June 6, 2014

BRUSSELS (Alliance News) - The pound climbed against its key counterparts in early European deals on Friday, as European stocks rose ahead of key US jobs data for May due shortly.

Economists expect an increase of about 215,000 jobs in May, following the addition of 288,000 jobs in April. Although the jobs growth is seen slowing in May, it is not sufficient to upset the view that economic recovery is on track.

The UK visible trade deficit widened in April reflecting a decline in exports amid rising imports, data from the Office for National Statistics showed today.

The goods trade deficit increased to GBP 9.6 billion from GBP 8.3 billion in March. The deficit was forecast to widen slightly to GBP 8.6 billion.

Exports declined 4.4% month-on-month in April to GBP 23.4 billion. Imports of goods, meanwhile, increased by 0.8% to GBP 33 billion.

The pound climbed to 0.8103 against the euro, compared to Thursday's closing value of 0.8119. On the upside, 0.80 is seen as next resistance level for the pound.

Germany's trade surplus grew to EUR 17.4 billion from EUR 16.6 billion in the previous month, figures from Destatis showed. Economists had forecast a surplus of EUR 15.1 billion.

After edging down to 1.6801 against the US dollar in early European deals, the pound tick up to 1.6820 shortly thereafter. The pair was valued at 1.6819 at yesterday's close. The next possible upside target for the pound lies around the 1.69 zone.

The pound bounced off to 1.5020 against the Swiss franc, from its prior low of 1.4979. If the pound extends gain, it may find resistance around the 1.51 mark. At Thursday's close, the pair was quoted at 1.4982.

Switzerland's consumer prices increased for the first time in four months in May, the Federal Statistical Office said today.

Consumer prices climbed 0.2% year-on-year after staying flat in April. The rate also exceeded the consensus forecast of 0.1%.

The pound rose back against the yen with pair trading at 172.17, after sliding to 171.82 at 3:30 am ET. The pound-yen pair closed yesterday's trading at 172.19. Further uptrend may take the pound to a resistance around the 173.00 area.

Besides jobs data, the US consumer credit for April is also due in the New Yok session.

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Source: Alliance News

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